Visiting? Relocating? Check out the Torrance Advantage

 TORRANCE california

business//residents
------------
------------
 | Compensation Provisions Summary
-

font size: A | A | A

Mayor and Council Pensions

Elected officials are covered by the Public Employee's Retirement System (PERS).  This is a pension program funded by a combination of employee and employer contributions.  For elected officials, the City pays 100% of both the employee and the employer contributions.  In addition, the City has contracted with PERS to include the 7% "employee" contribution as reported earnings for the purpose of calculating final monthly compensation.

Three factors are used to calculate pension allowance: service years; benefit factor (based on age at retirement); and final compensation (average monthly eligible earnings over last 12 consecutive month plus 7%).  For purposes of calculating pension allowance, only PERS-able compensation is included in eligible earnings.

The following table demonstrates benefit factor by age:

AGE

BENEFITS FACTOR (%) 

50 

 1.426

51

 1.522 

52 

 1.628 

53 

 1.742 

54 

 1.866 

55

 2.000

56

  2.052 

57 

 2.104 

58

 2.156 

59

 2.210 

60

 2.262 

61

2.314 

62

2.366 

63

2.418 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following is the retirement formula:
(Years of Service) x (Benefit Factor) x (Final Monthly Compensation) = Monthly Pension

For example, if a Councilmember has served two full terms (8 years) and begins pension payments at 63 years of age, his/her monthly pension is calculated as follows: 8 (years of service) x 2.418% (benefit factor) x $107 (final monthly compensation) = $20.70

Another example, if a Mayor has served two full terms (8 years) in addition to two full terms as a Councilmember (8 years) for a total of 16 years of service, and begins pension payments at 63 years of age, his/her monthly pension is calculated as follows: 16 (years of service) x 2.418% (benefit factor) x $107 (monthly compensation) = $41.40